Cash-strapped California is under new management. Real estate kingpin Sam Zell took the state private this week in a deal that bears eerie similarities to his purchase of Tribune Co. and the Los Angeles Times.

In his first act as CEO, Zell replaced the state Legislature with a Magic 8 Ball, a widely hailed move that could save $1 billion a year.

He also ordered a 15% cut in the number of state residents. Millions of unlucky citizens were then called into their local mayor's office and told they were being let go.

Some received a personal note from the new state Legislature: "Outlook not so good."

"I can't believe it," said Sally
Stone, a longtime Fresno resident who was given an hour to pack her belongings before being escorted out of California by burly security guards.